Australian Securities and Investments Commission v King [2020] HCA 4

Australian Securities and Investments Commission v King [2020] HCA 4

Paragraph (b)(ii) of the definition of 'officer' in s 9 of the Corporations Act 2001 (Cth) is not confined to persons who hold or act in a recognised office or position of a corporation. It applies to any person who, in fact, has the capacity to affect significantly the corporation’s financial standing, regardless...

Source-derived case information.

Parties
Appellant: Australian Securities and Investments Commission; First Respondent: Michael Christodoulou King; Second Respondent: Second respondent
Jurisdiction
Australia
Judgment Date
11 March 2020
Procedural Posture
Appeal / High Court Appeal From the Court of Appeal, Supreme Court of Queensland
Outcome
Appeal allowed
Legal Topics
Statutory Interpretation – Definition of 'officer', Liability of Company Officers, Managed Investment Schemes, Corporate Groups
Corporations Law Statutory Interpretation – Definition of 'officer' Liability of Company Officers Managed Investment Schemes Corporate Groups

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Parties

Australian Securities and Investments Commission

Appellant

Michael Christodoulou King

First Respondent

Second respondent

Second Respondent

Procedural Posture

Appeal / High Court Appeal From the Court of Appeal, Supreme Court of Queensland

Legal Issues

  1. 1 Proper construction of s 9 definition of 'officer' in Corporations Act 2001 (Cth) para (b)(ii)
  2. 2 Whether a person must hold or act in a recognised position to be an officer under s 9(b)(ii)
  3. 3 Whether Mr King was an officer of MFSIM within the meaning of s 9(b)(ii)

Ratio Decidendi

Paragraph (b)(ii) of the definition of 'officer' in s 9 of the Corporations Act 2001 (Cth) is not confined to persons who hold or act in a recognised office or position of a corporation. It applies to any person who, in fact, has the capacity to affect significantly the corporation’s financial standing, regardless of appointment or title. On the facts, Mr King had such capacity and was therefore an officer of MFSIM under s 9(b)(ii).

Court Disposition

Appeal allowed

Orders

  • Appeal allowed.
  • Paragraphs 1, 2 and 7 of the order made by the Court of Appeal of the Supreme Court of Queensland on 18 December 2018 in Appeal No 6320 of 2017 be set aside and in their place, order that the appeal to the Court of Appeal be dismissed.